The down payment range for a $600,000 house
For a $600,000 house, your down payment will fall somewhere between $12,000 and $300,000, depending on which loan program you use. The most common scenario—a conventional loan—requires 20 percent down, which is $120,000. But you can put down less if you accept a higher interest rate and mortgage insurance, or more if you have the cash and want to lower your monthly payment.
The minimum down payment varies by loan type. FHA loans let you put down as little as 3.5 percent ($21,000), while VA loans and USDA loans may require zero down if you meet their specific requirements. Jumbo loans—which apply to mortgages over $766,550 in most places—typically demand 10 to 20 percent down, though some lenders go lower.
Your actual down payment also depends on what the lender will approve you for, which hinges on your credit score, income, debt-to-income ratio, and the size of your cash reserves. A lender may require more down if your credit is below 700 or if your debt payments already consume a large share of your income.
Key Takeaways
- A 20 percent down payment on a $600,000 house is $120,000, the standard for conventional loans without mortgage insurance.
- FHA loans allow 3.5 percent down ($21,000), but add mortgage insurance costs that persist for the life of the loan if you put down less than 10 percent.
- VA and USDA loans may require zero down if you meet military service or rural property requirements, but not all $600,000 properties may have access to.
- Putting down less than 20 percent means paying private mortgage insurance (PMI), which typically costs 0.5 to 1.5 percent of the loan amount per year.
- Your lender will verify your income and debt before approving any down payment amount, so a pre-approval letter shows you what you can actually afford.
How down payment percentage changes your monthly payment and total cost
The down payment you choose directly affects your monthly mortgage payment and how much interest you pay over the life of the loan. On a $600,000 house at a 7 percent interest rate over 30 years, the difference between 10 percent down and 20 percent down is roughly $500 per month—because you are borrowing $60,000 more.
A smaller down payment also means paying mortgage insurance. With 10 percent down on a $600,000 house, you would owe roughly $300 to $450 per month in PMI, depending on your credit score and the lender. That insurance stays on your loan until you have paid down the principal to 80 percent of the original purchase price—which takes years, even with a 30-year mortgage.
The trade-off is liquidity: keeping $60,000 in your bank account instead of putting it toward the house means you have cash for emergencies, home repairs, or other investments. Whether that trade-off makes sense depends on your financial situation and how confident you are in your income stability.
Down payment requirements by loan type
| Loan Type | Minimum Down Payment | Mortgage Insurance | Who Qualifies |
|---|---|---|---|
| Conventional | 3–20% | PMI if under 20% | Most buyers with decent credit |
| FHA | 3.5% | MIP for life of loan | First-time buyers, lower credit scores |
| VA | 0% | None | Active military, veterans, surviving spouses |
| USDA | 0% | None | Rural property, income limits apply |
| Jumbo | 10–20% | PMI if under 20% | Loans over conventional limits |
Conventional loans are the fastest to close and carry the lowest interest rates if you have a credit score above 740 and can put down 20 percent. If you put down less, you pay PMI until you reach 80 percent equity, which you can remove by refinancing or by requesting removal once you hit that threshold.
FHA loans are designed for buyers with lower credit scores or smaller down payments. The trade-off is mortgage insurance premium (MIP), which is not removable—it stays on the loan for the full 30 years if you put down less than 10 percent. If you put down exactly 10 percent, MIP drops off after 11 years. On a $600,000 house, FHA insurance adds roughly $250 to $350 per month.
VA loans and USDA loans require zero down but have strict may be able to access rules. A $600,000 house in a rural area may may have access to for USDA financing if the property meets the agency's definition of rural and your income falls within the limit for your county. VA loans have no income limit but require a Certificate of may be able to access and a valid military connection.
Closing costs and cash you need beyond the down payment
Your down payment is only part of the cash you need at closing. Closing costs—appraisal, title insurance, attorney fees, lender fees, property taxes, and homeowners insurance—typically run 2 to 5 percent of the purchase price. On a $600,000 house, that is $12,000 to $30,000 on top of your down payment.
Most lenders require you to bring closing costs to the table in cash; they cannot be rolled into the loan. Some sellers will pay part of your closing costs as a negotiation point, but you cannot count on that. Before you commit to a down payment amount, make sure you have enough cash left over for closing costs and a small emergency fund—lenders want to see that you are not borrowing every dollar.
If you are putting down less than 20 percent, factor in the first year of PMI or MIP as well. That is money you will owe monthly starting at closing, so your actual cash outlay in the first month includes down payment, closing costs, and the first mortgage insurance payment.
How to calculate what down payment you can afford
Start with your total liquid cash—money in savings and checking accounts that you can access without penalty. Subtract closing costs (get an estimate from a lender), then subtract an emergency fund of at least three months of expenses. What remains is what you can reasonably put down without leaving yourself vulnerable to a job loss or major repair.
Next, check your debt-to-income ratio. Add up all your monthly debt payments—car loans, student loans, credit cards, child support—and divide by your gross monthly income. Most lenders want this number below 43 percent. Your new mortgage payment will be added to this calculation, so a lender will tell you the maximum loan amount they will approve based on your income and existing debt.
Use a mortgage calculator to see what your monthly payment would be at different down payment levels, then compare that to your budget. A good rule of thumb is that your total housing payment (mortgage, insurance, taxes, HOA fees) should not exceed 28 percent of your gross monthly income. On a $600,000 house in a high-tax area, that payment can easily exceed $5,000 per month, which requires a household income of at least $215,000.
Getting pre-approved and locking in your down payment
A pre-approval letter from a lender tells you the maximum loan amount you may have access to for, which directly determines how much down payment you need. If a lender pre-approves you for a $480,000 loan, you would need to put down at least $120,000 on a $600,000 house. If they pre-approve you for $540,000, you could put down $60,000.
Pre-approval requires submitting pay stubs, tax returns, bank statements, and a credit check. The process takes three to five business days. Once you have a pre-approval letter, you know your budget and can shop for houses confidently. The letter is valid for 60 to 90 days, so you will need to refresh it if your offer is not accepted quickly.
When you make an offer on a house, your down payment amount becomes part of the contract. If you say you are putting down 20 percent and then try to put down 10 percent at closing, the seller can walk away or demand you cover the difference. Lock in your down payment amount before you make an offer, based on what your pre-approval letter says you can do.
What happens if you cannot save the full down payment
If you cannot save 20 percent, you have several options. You can put down 10 to 15 percent and accept PMI, which you can remove later once you reach 80 percent equity through regular payments or a refinance. You can use an FHA loan and put down 3.5 percent, accepting that mortgage insurance will stay on the loan longer. You can ask family members for a gift—lenders allow down payment gifts as long as the giver signs a letter stating it is a gift, not a loan.
Some employers offer down payment assistance programs, and some states and cities have first-time buyer programs that provide grants or low-interest loans for down payments. These programs vary widely by location and income, so check with your state housing finance agency or local housing authority to see what is available where you live.
Delaying your purchase to save more is also an option. Saving an extra $30,000 takes time, but it lowers your monthly payment, reduces the total interest you pay, and gives you a larger cash cushion for emergencies and repairs.
Frequently Asked Questions
Can I borrow my down payment from someone?
No. Lenders require that your down payment come from your own funds or from a gift. If a family member gives you money for the down payment, they must sign a gift letter stating it is not a loan and that they expect no repayment. If you borrow the money, the lender will count that debt in your debt-to-income ratio and may deny your mortgage.
What if I put down more than 20 percent?
Putting down more than 20 percent lowers your monthly payment and total interest paid, but it ties up cash you might need elsewhere. Some people put down 25 or 30 percent to avoid PMI and reduce their loan amount, while others prefer to keep the extra cash invested or in savings. There is no single right answer—it depends on your financial goals and risk tolerance.
Can I remove PMI before I reach 80 percent equity?
Yes, if your home value increases. If your house appreciates and you refinance or get a new appraisal, you may reach 80 percent equity faster than your payment schedule suggests. You can then request PMI removal. Some lenders will remove PMI automatically once you hit 80 percent equity, but you should not count on it—ask your lender about their policy.
Do I need to put down 20 percent to get a good interest rate?
No, but a larger down payment does help. Lenders offer better rates to borrowers with larger down payments because the lender's risk is lower. The difference between 10 percent and 20 percent down might be 0.25 to 0.5 percentage points in interest rate, which adds up over 30 years. Ask your lender for rate quotes at different down payment levels to see the actual difference.
What if the house appraises for less than the purchase price?
If the appraisal comes in low, you have three choices: renegotiate the price with the seller, put down more cash to make up the difference, or walk away. If you agreed to put down 20 percent on a $600,000 house but it appraises for $550,000, you would need to put down $110,000 to maintain 20 percent equity. Many buyers walk away in this scenario rather than increase their down payment.